February 2, 1999 (The Editor’s Desk is updated each business day.)
Independent contractors differ from
traditional workers
In February 1997, 8.5 million people worked as
independent contractors. This was 6.7 percent of all workers—a proportion that was
essentially unchanged from 1995. Independent contractors were the largest group of workers
among those in alternative employment arrangements, accounting for roughly two-thirds of
such workers.
[Chart data—TXT]
Independent contractors differed from traditional workers in many
significant ways. For example, two-thirds of independent contractors were men, compared
with slightly more than one-half of traditional workers. Nearly 4 out of 5
independent contractors were at least 35 years old, compared with 3 out of 5 traditional
workers. Thirty-four percent of independent contractors between the ages of 25 and 64 had
a college degree, almost 5 percentage points higher than among traditional workers.
About 88 percent of independent contractors were self-employed. Thus, the higher levels
of experience and schooling of independent contractors may be a result of the significant
human and financial capital often required to run one’s own business.
These data are produced by a supplement to the Current Population Survey. More information can be
found in "Workers in
alternative employment arrangements: a second look," Monthly
Labor Review, November 1998. A summary of CPS data on such employment
arrangements is available from news release USDL 97-422, "Contingent and Alternative
Employment Arrangements, February 1997."Â The
"independent contractors" category includes workers identified as independent
contractors, independent consultants, or freelance workers, whether they were
self-employed or wage and salary workers. Other categories of alternative employment
arrangements are on-call workers, temporary help agency workers, and workers provided by
contracting firms.
Of interest
Spotlight on Statistics: National Hispanic Heritage Month
In this Spotlight, we take a look at the Hispanic labor force—including labor force participation, employment and unemployment, educational attainment, geographic location, country of birth, earnings, consumer expenditures, time use, workplace injuries, and employment projections.
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